An Effective AP Policies & Procedures Manual can Help Move AP from Good to Great!

Transcription

1 An Effective AP Policies & Procedures Manual can Help Move AP from Good to Great! Pam Miller : : Senior Trainer : : IOFM

2 Good to Great May 7-9, 2017 Sound familiar? The rest of the title of the book by James C. Collins: Why Some Companies Make the Leap and Others Don t Another quote: Good is the enemy of the great it s so easy to settle Great tools enable great performance think about it the AP manual is absolutely a tool

3 AP Manual Why? The answer is easy if you are a public company SOX If you are a public company you are supposed to have all your procedures written down and tested against what people are doing on a daily basis And the reality is that while we may have complied with this requirement, the result may or may not actually be useful in real life

4 That Tool Thing A manual provides the rules of the game AP is an area comprised of many complex tasks AP is an area full of risk internal & external A manual keeps people on the same page doing the same tasks in the same way Which ensures that tasks are actually completed And that risk is mitigated

5 In Addition A manual is a training tool May 7-9, 2017 Certainly for new hires And not just for folks in AP It s a reference tool The source of truth as to how, when, why, to what extent, & where And the who not names positions or titles It provides cover for when others push back against the rules And for when others try to put the blame for whatever bad happens on AP

6 Let s Get Real Does your AP Manual Look Like: This? Or This?

7 Okay, We Have Work to Do, What s the Plan? Assess what you have now Most of us have something so we will be fixing or maybe consolidating assorted pieces and parts rather than constructing You know, all those memos, cheat sheets, lists, sticky notes that have accumulated on cubicle walls and monitors Then determine a plan of action

8 The Manual Project Represents Opportunity! Opportunity to review what AP does & how it is done (& why) Opportunity to throw out outdated policies And outdated procedures To get rid of the that s the way we ve always done it Remember that the 6 most expensive words in business are: We ve always done it that way. Catherine DeVrye Opportunity to include fresh, sparkling new and AP friendly policies & procedures ones that make sense!

9 Creating (or Fixing) the Manual This makes a great group project & working on it can be a super learning experience Start with the policies This is probably best done in a series of group discussions And may require including folks from outside of AP Move on to the procedures Consider assigning them to individuals, particularly those who perform certain tasks

10 Policies vs. Procedures May 7-9, 2017 They are different animals You need both Policies are somewhat philosophical Policies are often developed in places that are not AP Although AP needs to develop their own Or at least put their own interpretation on them Procedures are the how-tos the step by step

11 Examples of Policies May 7-9, 2017 We take all discounts offered or we pay in 45 days Our preferred method of payment is by ACH We do not sign personal guarantees on credit apps Requests for payment must contain 2 signatures The fee for a rush check is $ Requests for payment must be received in AP by noon on Tuesday for Friday s payment runs

12 Examples of Procedures How to process an invoice step by step How to complete an expense report step by step How to reconcile your p-card statement step by step How to perform a check run step by step Step by step is key when writing procedures May 7-9, 2017

13 There are 2 Kinds of People in the World Those who love to read instructions And those who don t

14 Creating a Useful Manual, Not a Doorstop The goal is to get people to read & use this tool First, dispense with the idea of a manual And no, that doesn t mean that that pile of notes and stickies is okay. Consider separating policies from procedures Consider separating internal AP procedures from procedures outsiders need to follow

15 Not a Doorstop, continued Consider various formats Tailored to the audience that needs to know what you are trying to impart Consider delivery methods How are you going to get the right information to the right people at the right time? Focus on design Of the instructions And particularly of forms

16 Where to Begin May 7-9, 2017 Collect it all! The existing manual on paper or if online, get out that projector so you can all look at the same thing at the same time All the notes, cheat sheets, yellow stickies, etc. that everyone has stuck everywhere Notes or complaints you have kept Suggestions that you have stuck somewhere Collect everyone!

17 Organization May 7-9, 2017 Create a numbering system Sections and sub-sections Easy to replace outdated sections Add the section number (and a link if your manual is online) to each and every form so people know where to go to get answers to their questions on completing the form No, it doesn t guarantee they will read the instructions And no, it won t eliminate calls to AP, but It will help!

18 Expiration Dates May 7-9, 2017 A written manual is likely to become out of date quickly it seems as soon as it is printed! A loose leaf binder can help That way you can pull the expired pages and replace with new ones Based on your numbering system But, really, is everyone in the organization likely to keep up with this task

19 On-line is Better May 7-9, 2017 Easily accessible by both AP staff and all others who are affected Can use links! Easy to update one update updates it for everyone But it s easy to lose updates as you update indicate at the outset what has been updated Add What s New and a What s Changed section to the landing page Update these as you update the manual

20 Let s Talk Policies Some existing policies may be detrimental to the smooth functioning of AP Some may be unclear or outdated Discussions may need to go outside of AP Itemize questionable policies and come up with alternatives that accomplish the same thing Changes are more likely to be approved if choices are provided less thinking required on the part of the approvers!

21 Procedures It s a good idea to flow chart your procedures You are likely to uncover remnant steps or even entire procedures that are so out of date they make no sense Be open minded Many processes and steps in processes were decreed by folks long gone Or were required for the software in use when they were created

22 Procedures, continued Group discussions on procedures will likely uncover many (and, we hope, all) the workarounds that people have added Some of which you may want to adapt and/or adopt And some of which may lead to gaps, risks, or other issues Be open minded And non-judgmental

23 Procedures, continued Keep in mind that you probably update these all the time without even realizing it and so does the staff Think about all the sticky notes & the cheat sheets And the memos that go out particularly when a problem or gap has been discovered This is your opportunity to incorporate the latest and greatest into the approved procedures

24 A Picture is Worth 1000 Words Just because the manual has always been words doesn t mean it always has to be Include flow charts Let people know how a process works And who all is involved in the process Include screen shots So much work is done on screens now Add arrows, circles, notes on what is and is not acceptable data for particular fields

25 Workflow Data Entry Form Batch Processor May 7-9, 2017 Scan Oracle 11i FAX Checks & ACH EDI Processor And Editor Direct Drive Pcard Direct Drive Invoicing Imaging Repository Cleared Checks Processor And Editor Imaging Repository Intranet Pcard Processor And Editor 1000 Words Equivalent

26 Another 1000 Words Equivalent

27 Include AP Forms in the Manual In a separate section like an appendix Or in the sections where they are discussed With links in a side bar so they can be easily accessed And in other spots as well on AP s landing page, on a shared drive And for paper forms in in the mailroom, on a easily accessible shelf in AP, etc. In a downloadable format on a shared drive Don t forget to include reference or links to where the instructions are in the manual

28 Whether Paper or Online, Form Design is Critical Forms should include instructions on the front, not the back! General instructions at the top Specific instructions where needed Use plain, non ambiguous language Two signatures required Include routing instructions if completion does not spawn a workflow people need to know where your lovely form goes! And even if there is workflow, indicate the path the form will take

29 Forms, continued Online forms are cool They can be completed from anywhere 24/7 They are not all that difficult to build Well, well designed ones are a little harder than poorly designed ones Make them complete-able on line Ensures required fields are completed Use drop down boxes Ensures data uniformity & accuracy And then submit-able Or printable if you must (with the data filled in)

30 Put that Manual to Work for You Can you make a video of the most common procedures that those outside of AP must follow? Like how to complete an online check request? Or an expense report? Links in the manual, in the side bar, maybe even add the site address to the form Doesn t have to be fancy Remember people learn in different ways

31 To Work for You, continued Make (printable) e-books that include forms & instructions (with links) for common procedures Completing an expense report Reviewing p-card transactions Provide them to HR or whoever orients new employees who will be performing these tasks And keep instructions for how to find them or even a few paper copies handy for re-education efforts

32 To Work for You, continued Consider doing some web-based training About tasks commonly performed (maybe not so well) by those outside of AP Completing an expense report Reviewing p-card transactions Especially when new procedures are added Or when there is a significant change Especially new software Record these and add them to your video library

33 To Work for You, continued The same violations happen all the time Create form letters that cover those problems and stash them on a shared drive or other central location May 7-9, 2017 Use the language of the manual and include the appropriate section numbers Pull pages/sections of the manual that explain the policy and/or procedure in question Return the expense report, invoice, payment request, etc. along with the form letter and pertinent section of the manual

34 FAQS Create a Frequently Asked Questions page(s) FAQS directed primarily to those outside of AP Include all the areas where problems are recurring Include references (and links) to where in the manual the pertinent policy and/or procedures may be found

35 WIKI Directed primarily to those within AP Include the questions that are always asked May 7-9, 2017 And the areas where errors are made most often And links to the manual And to where the form letters & manual pages are located And information AP needs that maybe shouldn t be disseminated to everyone in the organization Like terms lists

36 Cheat Sheets & Reminders Nothing wrong with them there is a lot to remember in AP But better when it comes from one source and they are all the same & match what the manual says Consider adding the appropriate section reference for quick access to additional information in the manual Update in unison

37 Keeping It Up-to-Date Ideally as something changes pull the old section and substitute with the new Often easier said than done As you develop new processes or procedures, or implement new software, use your instructions to AP as the basis for changes in the manual You have already done a lot of the work

38 Keeping It Up-to-Date, continued Schedule a manual discussion session with AP on a monthly or quarterly basis Helps keep everyone on the same page Catch those new workarounds before they are too bound to the procedure or cause a problem Or as a project for the least busy month of the year The manual is a valuable tool And it needs to be cared for

39 We Want to Move from This

40 To This.Well, at Least in This Direction

41